OC ditches Integreon deal as bulk of support team moves back in-house

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  • Hasn't this been done before with the same result?

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  • I believe this was expected. This can be a perfect case study for "why outsourcing fails" or "How leadership drives customer retention".

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  • Perhaps someone could explain why this has failed. I suspect lack of fluidity in the contract from the outset. Outsourcing will only work if the "client" has the ability to turn it on and off - Were CM locked in?

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  • Reasons for failure I suspect are:
    1) Work staying in a high cost location.
    2) Scale - each support function is too small on its own unless either skill sets are shared amongst functions.
    3) Scale - no other firm really wanted to add scale and therefore efficiencies in a series of small functions
    4) I presume a cost down element in the contract which trapped the contract in losses.
    5) this was structured like a BPO contract.
    6) Constant management change...Liam Brown, Chris Bull etc.
    Pretty much a copybook example of what not to do.

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  • It will be interesting to see how the Cameron McKenna engagement turns out to be. Any speculations?

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  • CMS model in similar shape as OC: Loss making. Quite a number of experienced staff leaving and an on-shore offering in EC1; not a classic outsourcing strategy or location....now they cant't even move it to the UK's second most expensive city...Bristol....

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  • The author of this article described Integreon as an outsourcing beast which was true till about 2011 when Integreon was guided by a smart, experienced and client focused management team. The change (new CEO) did not take the time to understand the Integreon business. He went on an org change rampage and gave control to individuals who had absolutely no experience in providing services to a high end UK law firms like OC and CMS! So bad decisions, crazy ideas and zero client focus by the new management has led to this huge debacle!

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  • Looks like the OC thought police have had a field day with this one!! Given OC worked with Integreon at the outset to develop the business model perhaps they should have ensured the outsourcer had the capacity to expand at the same time/rate as the firms it served As per comments above, a design flaw with a lack of fluidity in the contract. Interesting given it's a firm that advises others on outsourcing contracts. All a bit of a mess.

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  • For insight into the positive developments taking place at Integreon, see Corporate Update from CEO Bob Gogel: http://www.integreon.com/phpapp/wordpress/wp-content/uploads/2013/04/2013-apr-integreon-newsletter-smp.html

    Also recommended are thoughts on this subject from several bloggers:

    http://markfawdon.com/2013/04/18/integreon-it-outsourcing/

    http://jepsonholt.com/2013/04/03/so-is-outsourcing-dead-or-is-it-just-that-this-deal-simply-did-not-work/

    http://www.scoop.it/t/legal-process-outsourcing-lpo-blog/p/4000810613/why-it-is-all-healthy-cms-osborne-clarke-integreon-and-lpo

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  • SUNDE’s Zero Client is arguably the "zero-est" zero client of all. It has no onboard processing, operating system, or intelligence whatsoever, but is simply an "I/O redirector" that works via TCP/IP. The SUNDE device is inherently much simpler than a thin client, and because there is no firmware to be updated or "hard associations" to be created between the zero client and the virtual machine that comprises a user's virtual desktop, it makes discovery and provisioning for VDI a much easier process.
    visit : sundenc(dot)com

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